Correlation Between Vaxart and VBI Vaccines
Can any of the company-specific risk be diversified away by investing in both Vaxart and VBI Vaccines at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Vaxart and VBI Vaccines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vaxart Inc and VBI Vaccines, you can compare the effects of market volatilities on Vaxart and VBI Vaccines and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Vaxart with a short position of VBI Vaccines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vaxart and VBI Vaccines.
Diversification Opportunities for Vaxart and VBI Vaccines
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vaxart and VBI is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Vaxart Inc and VBI Vaccines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VBI Vaccines and Vaxart is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Vaxart Inc are associated (or correlated) with VBI Vaccines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VBI Vaccines has no effect on the direction of Vaxart i.e., Vaxart and VBI Vaccines go up and down completely randomly.
Pair Corralation between Vaxart and VBI Vaccines
Given the investment horizon of 90 days Vaxart Inc is expected to generate 0.45 times more return on investment than VBI Vaccines. However, Vaxart Inc is 2.21 times less risky than VBI Vaccines. It trades about 0.01 of its potential returns per unit of risk. VBI Vaccines is currently generating about -0.09 per unit of risk. If you would invest 97.00 in Vaxart Inc on August 31, 2024 and sell it today you would lose (36.00) from holding Vaxart Inc or give up 37.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 83.65% |
| Values | Daily Returns |
Vaxart Inc vs. VBI Vaccines
Performance |
| Timeline |
| Vaxart Inc |
| VBI Vaccines |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Vaxart and VBI Vaccines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vaxart and VBI Vaccines
The main advantage of trading using opposite Vaxart and VBI Vaccines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vaxart position performs unexpectedly, VBI Vaccines can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in VBI Vaccines will offset losses from the drop in VBI Vaccines' long position.| Vaxart vs. Cue Biopharma | Vaxart vs. Eliem Therapeutics | Vaxart vs. Inhibrx | Vaxart vs. Molecular Partners AG |
| VBI Vaccines vs. Tonix Pharmaceuticals Holding | VBI Vaccines vs. Jaguar Animal Health | VBI Vaccines vs. Vaxart Inc | VBI Vaccines vs. Allogene Therapeutics |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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